[DOCID: f:h1554ih.txt] 106th CONGRESS 1st Session H. R. 1554 To amend the provisions of title 17, United States Code, and the Communications Act of 1934, relating to copyright licensing and carriage of broadcast signals by satellite. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 26, 1999 Mr. Coble (for himself, Mr. Tauzin, Mr. Berman, Mr. Markey, Mr. Hyde, Mr. Bliley, Mr. Conyers, Mr. Dingell, Mr. Sensenbrenner, Mr. Oxley, Mr. Delahunt, Mr. Rush, Mr. Goodlatte, Mr. Stearns, Mr. Wexler, Mr. Boucher, Mr. Cannon, Mr. Pickering, Mr. McCollum, Mr. Sawyer, Mr. Gallegly, Mr. Upton, Mr. Rogan, Mr. Gillmor, Mr. Pease, Mr. Stupak, Mr. Jenkins, and Mr. Hilleary) introduced the following bill; Title I, referred to the Committee on Commerce; Title II, referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend the provisions of title 17, United States Code, and the Communications Act of 1934, relating to copyright licensing and carriage of broadcast signals by satellite. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Satellite Copyright, Competition, and Consumer Protection Act of 1999''. TITLE I--SATELLITE COMPETITION AND CONSUMER PROTECTION SEC. 101. SHORT TITLE. This title may be cited as the ``Satellite Competition and Consumer Protection Act''. SEC. 102. RETRANSMISSION CONSENT. Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) is amended-- (1) by amending paragraphs (1) and (2) to read as follows: ``(b)(1) No cable system or other multichannel video programming distributor shall retransmit the signal of a television broadcast station, or any part thereof, except-- ``(A) with the express authority of the originating station; ``(B) pursuant to section 614, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section; or ``(C) pursuant to section 338, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section. ``(2) The provisions of this subsection shall not apply-- ``(A) to retransmission of the signal of a noncommercial television broadcast station; ``(B) to retransmission of the signal of a television broadcast station outside the station's local market by a satellite carrier directly to its subscribers, if-- ``(i) such station was a superstation on May 1, 1991; ``(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; and ``(iii) the satellite carrier complies with all network nonduplication, syndicated exclusivity, and sports blackout rules adopted by the Commission pursuant to section 712 of this Act; ``(C) until 7 months after the date of enactment of the Satellite Competition and Consumer Protection Act, to retransmission of the signal of a television network station directly to a satellite antenna, if the subscriber receiving the signal is located in an area outside the local market of such station; or ``(D) to retransmission by a cable operator or other multichannel video provider, other than a satellite carrier, of the signal of a television broadcast station outside the station's local market if such signal was obtained from a satellite carrier and-- ``(i) the originating station was a superstation on May 1, 1991; and ``(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code.''; (2) by adding at the end of paragraph (3) the following new subparagraph: ``(C) Within 45 days after the date of enactment of the Satellite Competition and Consumer Protection Act, the Commission shall commence a rulemaking proceeding to revise the regulations governing the exercise by television broadcast stations of the right to grant retransmission consent under this subsection, and such other regulations as are necessary to administer the limitations contained in paragraph (2). The Commission shall complete all actions necessary to prescribe such regulations within one year after such date of enactment. Such regulations shall-- ``(i) establish election time periods that correspond with those regulations adopted under subparagraph (B) of this paragraph; and ``(ii) until January 1, 2006, prohibit television broadcast stations that provide retransmission consent from engaging in discriminatory practices, understandings, arrangements, and activities, including exclusive contracts for carriage, that prevent a multichannel video programming distributor from obtaining retransmission consent from such stations.''; (3) in paragraph (4), by adding at the end the following new sentence: ``If an originating television station elects under paragraph (3)(C) to exercise its right to grant retransmission consent under this subsection with respect to a satellite carrier, the provisions of section 338 shall not apply to the carriage of the signal of such station by such satellite carrier.''; (4) in paragraph (5), by striking ``614 or 615'' and inserting ``338, 614, or 615''; and (5) by adding at the end the following new paragraph: ``(7) For purposes of this subsection, the term `television broadcast station' means an over-the-air commercial or noncommercial television broadcast station licensed by the Commission under subpart E of part 73 of title 47, Code of Federal Regulations, except that such term does not include a low-power or translator television station.''. SEC. 103. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION BROADCAST SIGNALS. Title III of the Communications Act of 1934 is amended by inserting after section 337 (47 U.S.C. 337) the following new section: ``SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS. ``(a) Carriage Obligations.-- ``(1) In general.--Subject to the limitations of paragraph (2), each satellite carrier providing secondary transmissions to subscribers located within the local market of a television broadcast station of a primary transmission made by that station shall carry upon request all television broadcast stations located within that local market, subject to section 325(b), by retransmitting the signal or signals of such stations that are identified by Commission regulations for purposes of this section. ``(2) Effective date.--No satellite carrier shall be required to carry local television broadcast stations under paragraph (1) until January 1, 2002. ``(b) Good Signal Required.-- ``(1) Costs.--A television broadcast station asserting its right to carriage under subsection (a) shall be required to bear the costs associated with delivering a good quality signal to the designated local receive facility of the satellite carrier or to another facility that is acceptable to at least one-half the stations asserting the right to carriage in the local market. ``(2) Regulations.--The regulations issued under subsection (g) shall set forth the obligations necessary to carry out this subsection. ``(c) Duplication Not Required.-- ``(1) Commercial stations.--Notwithstanding subsection (a), a satellite carrier shall not be required to carry upon request the signal of any local commercial television broadcast station that substantially duplicates the signal of another local commercial television broadcast station which is secondarily transmitted by the satellite carrier within the same local market, or to carry upon request the signals of more than 1 local commercial television broadcast station in a single local market that is affiliated with a particular television network. ``(2) Noncommercial stations.--The Commission shall prescribe regulations limiting the carriage requirements under subsection (a) of satellite carriers with respect to the carriage of multiple local noncommercial television broadcast stations. To the extent possible, such regulations shall provide the same degree of carriage by satellite carriers of such multiple stations as is provided by cable systems under section 615. ``(d) Channel Positioning.--No satellite carrier shall be required to provide the signal of a local television broadcast station to subscribers in that station's local market on any particular channel number or to provide the signals in any particular order, except that the satellite carrier shall retransmit the signal of the local television broadcast stations to subscribers in the stations' local market on contiguous channels and provide access to such station's signals at a nondiscriminatory price and in a nondiscriminatory manner on any navigational device, on-screen program guide, or menu. ``(e) Compensation for Carriage.--A satellite carrier shall not accept or request monetary payment or other valuable consideration in exchange either for carriage of local television broadcast stations in fulfillment of the requirements of this section or for channel positioning rights provided to such stations under this section, except that any such station may be required to bear the costs associated with delivering a good quality signal to the local receive facility of the satellite carrier. ``(f) Remedies.-- ``(1) Complaints by broadcast stations.--Whenever a local television broadcast station believes that a satellite carrier has failed to meet its obligations under this section, such station shall notify the carrier, in writing, of the alleged failure and identify its reasons for believing that the satellite carrier is obligated to carry upon request the signal of such station or has otherwise failed to comply with other requirements of this section. The satellite carrier shall, within 30 days of such written notification, respond in writing to such notification and either begin carrying the signal of such station in accordance with the terms requested or state its reasons for believing that it is not obligated to carry such signal or is in compliance with other requirements of this section, as the case may be. A local television broadcast station that is denied carriage in accordance with this section by a satellite carrier or is otherwise harmed by a response by a satellite carrier that it is in compliance with other requirements of this section may obtain review of such denial or response by filing a complaint with the Commission. Such complaint shall allege the manner in which such satellite carrier has failed to meet its obligations and the basis for such allegations. ``(2) Opportunity to respond.--The Commission shall afford the satellite carrier against which a complaint is filed under paragraph (1) an opportunity to present data and arguments to establish that there has been no failure to meet its obligations under this section. ``(3) Remedial actions; dismissal.--Within 120 days after the date a complaint is filed under paragraph (1), the Commission shall determine whether the satellite carrier has met its obligations under this chapter. If the Commission determines that the satellite carrier has failed to meet such obligations, the Commission shall order the satellite carrier, in the case of an obligation to carry a station, to begin carriage of the station and to continue such carriage for at least 12 months, or, in the case of the failure to meet other obligations under this section, shall take other appropriate remedial action. If the Commission determines that the satellite carrier has fully met the requirements of this chapter, the Commission shall dismiss the complaint. ``(g) Regulations by Commission.--Within 180 days after the date of enactment of this section, the Commission shall, following a rulemaking proceeding, issue regulations implementing this section. ``(h) Definitions.--As used in this section: ``(1) Subscriber.--The term `subscriber' means a person that receives a secondary transmission service by means of a secondary transmission from a satellite and pays a fee for the service, directly or indirectly, to the satellite carrier or to a distributor. ``(2) Distributor.--The term `distributor' means an entity which contracts to distribute secondary transmissions from a satellite carrier and, either as a single channel or in a package with other programming, provides the secondary transmission either directly to individual subscribers or indirectly through other program distribution entities. ``(3) Local receive facility.--The term `local receive facility' means the reception point in each local market which a satellite carrier designates for delivery of the signal of the station for purposes of retransmission. ``(4) Television broadcast station.--The term `television broadcast station' has the meaning given such term in section 325(b)(7). ``(5) Secondary transmission.--The term `secondary transmission' has the meaning given such term in section 119(d) of title 17, United States Code.''. SEC. 104. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS. Section 712 of the Communications Act of 1934 (47 U.S.C. 612) is amended to read as follows: ``SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS. ``(a) Extension of Network Nonduplication, Syndicated Exclusivity, and Sports Blackout to Satellite Retransmission.--Within 45 days after the date of enactment of the Satellite Competition and Consumer Protection Act, the Commission shall commence a single rulemaking proceeding to establish regulations that apply network nonduplication protection, syndicated exclusivity protection, and sports blackout protection to the retransmission of broadcast signals by satellite carriers to subscribers. To the extent possible consistent with subsection (b), such regulations shall provide the same degree of protection against retransmission of broadcast signals as is provided by the network nonduplication (47 C.F.R. 76.92), syndicated exclusivity (47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67) rules applicable to cable television systems. The Commission shall complete all actions necessary to prescribe regulations required by this section so that the regulations shall become effective within 1 year after such date of enactment. ``(b) Establishment of Network Nonduplication Boundaries.-- ``(1) Establishment of signal standard for network nonduplication required.--The Commission shall establish a signal intensity standard for purposes of determining the network nonduplication rights of local television broadcast stations. Until revised pursuant to subsection (c), such standard shall be the Grade B field strength standard prescribed by the Commission in section 73.683 of the Commission's regulations (47 C.F.R. 73.683). For purposes of this section, the standard established under this paragraph is referred to as the `Network Nonduplication Signal Standard'. ``(2) Establishment of improved predictive model required.--Within 180 days after the date of enactment of the Satellite Competition and Consumer Protection Act, the Commission shall take all actions necessary, including any reconsideration, to develop and prescribe by rule a point-to- point predictive model for reliably and presumptively determining the ability of individual locations to receive signals in accordance with the Network Nonduplication Signal Standard. In prescribing such model, the Commission shall ensure that such model takes into account terrain, building structures, and other land cover variations. The Commission shall establish procedures for the continued refinement in the application of the model by the use of additional data as it becomes available. For purposes of this section, such model is referred to as the `Network Nonduplication Reception Model', and the area encompassing locations that are predicted to have the ability to receive such a signal of a particular broadcast station is referred to as that station's `Reception Model Area'. ``(3) Network nonduplication.--The network nonduplication regulations required under subsection (a) shall allow a television network station to assert nonduplication rights as follows: ``(A) If a satellite carrier is retransmitting that station, or any other television broadcast stations located in the same local market, to subscribers located in that station's local market, the television network station may assert nonduplication rights against the satellite carrier throughout the area within which that station may assert such rights under the rules applicable to cable television systems (47 C.F.R. 76.92). ``(B) If a satellite carrier is not retransmitting any television broadcast stations located in the television network station's local market to subscribers located in such market, the television network station may assert nonduplication rights against the satellite carrier in the geographic area that is within such station's Reception Model Area, but such geographic area shall not extend beyond the local market of such station. ``(4) Waivers.--A subscriber may request a waiver from network nonduplication by submitting a request, through such subscriber's satellite carrier, to the television network station asserting nonduplication rights. The television network station shall accept or reject a subscriber's request for a waiver within 30 days after receipt of the request. The network nonduplication protection described in paragraph (3)(B) shall not apply to a subscriber if such station agrees to the waiver request and files with the satellite carrier a written waiver with respect to that subscriber allowing the subscriber to receive satellite retransmission of another network station affiliated with that same network. The television network station and the satellite carrier shall maintain a file available to the public that contains such waiver requests and the acceptances and rejections thereof. ``(5) Objective verification.-- ``(A) In general.--If a subscriber's request for a waiver under paragraph (4) is rejected and the subscriber submits to the subscriber's satellite carrier a request for a test verifying the subscriber's inability to receive a signal that meets the Network Nonduplication Signal Standard, the satellite carrier and the television network station or stations asserting nonduplication rights with respect to that subscriber shall select a qualified and independent person to conduct a test in accordance with the provisions of section 73.686(d) of title 47, Code of Federal Regulations, or any successor regulation. Such test shall be conducted within 30 days after the date the subscriber submits a request for the test. If the written findings and conclusions of a test conducted in accordance with the provisions of such section (or any successor regulation) demonstrate that the subscriber does not receive a signal that meets or exceeds the Network Nonduplication Signal Standard, the network nonduplication rights described in paragraph (3)(B) shall not apply to that subscriber. ``(B) Designation of testor and allocation of costs.--If the satellite carrier and the television network station or stations asserting nonduplication rights are unable to agree on such a person to conduct the test, the person shall be designated by an independent and neutral entity designated by the Commission by rule. Unless the satellite carrier and the television network station or stations asserting nonduplication rights otherwise agree, the costs of conducting the test under this paragraph shall be borne equally by the satellite carrier and the television network station or stations asserting nonduplication rights. A subscriber may not be required to bear any portion of the cost of such test. ``(6) Recreational vehicle location.--In the case of a subscriber to a satellite carrier who has installed satellite reception equipment in a recreational vehicle, and who has permitted any television network station seeking to assert network nonduplication rights to verify the motor vehicle registration, license, and proof of ownership of such vehicle, the subscriber shall be considered to be outside the local market and Reception Model Area of such station. For purposes of this paragraph, the term `recreational vehicle' does not include any residential manufactured home, as defined in section 603(6) of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)). ``(c) Review and Revision of Standards and Model.-- ``(1) Ongoing inquiry required.--Not later than 2 years after the date of enactment of the Satellite Competition and Consumer Protection Act, the Commission shall conduct an inquiry of the extent to which the Network Nonduplication Signal Standard, the Network Nonduplication Reception Model, and the Reception Model Areas of television stations are adequate to reliably measure the ability of consumers to receive an acceptable over-the-air television broadcast signal. ``(2) Data to be considered.--In conducting the inquiry required by paragraph (1), the Commission shall consider-- ``(A) the number of subscribers requesting waivers under subsection (b)(4), and the number of waivers that are denied; ``(B) the number of subscribers submitting petitions under subsection (b)(5), and the number of such petitions that are granted; ``(C) the results of any consumer research study that may be undertaken to carry out the purposes of this section; and ``(D) the extent to which consumers are not legally entitled to install broadcast reception devices assumed in the Commission's standard. ``(3) Report and action.--The Commission shall submit to the Congress a report on the inquiry required by this subsection not later than the end of the 2-year period described in paragraph (1). The Commission shall complete any actions necessary to revise the Network Nonduplication Signal Standard, the Network Nonduplication Reception Model, and the Reception Model Areas of television stations in accordance with the findings of such inquiry not later than 6 months after the end of such 2-year period. ``(4) Data submission.--The Commission shall prescribe by rule the data required to be submitted by television broadcast stations and by satellite carriers to the Commission or such designated entity to carry out this subsection, and the format for submission of such data.''. SEC. 105. CONSENT OF MEMBERSHIP TO RETRANSMISSION OF PUBLIC BROADCASTING SERVICE SATELLITE FEED. Section 396 of the Communications Act of 1934 (47 U.S.C. 396) is amended by adding at the end the following new subsection: ``(n) The Public Broadcasting Service shall certify to the Board on an annual basis that a majority of its membership supports or does not support the secondary transmission of the Public Broadcasting Service satellite feed, and provide notice to each satellite carrier carrying such feed of such certification.''. SEC. 106. DEFINITIONS. Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is amended-- (1) by redesignating-- (A) paragraphs (49) through (52) as paragraphs (52) through (55), respectively; (B) paragraphs (39) through (48) as paragraphs (41) through (50), respectively; and (C) paragraphs (27) through (38) as paragraph (28) through (39), respectively; (2) by inserting after paragraph (26) the following new paragraph: ``(27) Local market.-- ``(A) In general.--The term `local market', in the case of both commercial and noncommercial television broadcast stations, means the designated market area in which a station is located, and-- ``(i) in the case of a commercial television broadcast station, all commercial television broadcast stations licensed to a community within the same designated market area are within the same local market; and ``(ii) in the case of a noncommercial educational television broadcast station, the market includes any station that is licensed to a community within the same designated market area as the noncommercial educational television broadcast station. ``(B) County of license.--In addition to the area described in subparagraph (A), a station's local market includes the county in which the station's community of license is located. ``(C) Designated market area.--For purposes of subparagraph (A), the term `designated market area' means a designated market area, as determined by Nielsen Media Research and published in the DMA Market and Demographic Report.''; (3) by inserting after paragraph (39) (as redesignated by paragraph (1) of this section) the following new paragraph: ``(40) Satellite carrier.--The term `satellite carrier' means an entity that uses the facilities of a satellite or satellite service licensed by the Commission, and operates in the Fixed-Satellite Service under part 25 of title 47 of the Code of Federal Regulations or the Direct Broadcast Satellite Service under part 100 of title 47 of the Code of Federal Regulations, to establish and operate a channel of communications for point-to-multipoint distribution of television station signals, and that owns or leases a capacity or service on a satellite in order to provide such point-to- multipoint distribution, except to the extent that such entity provides such distribution pursuant to tariff under this Act.''; and (3) by inserting after paragraph (50) (as redesignated by paragraph (1) of this section) the following new paragraph: ``(51) Television network; television network station.-- ``(A) Television network.--The term `television network' means a television network in the United States which offers an interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated broadcast stations in 10 or more States. ``(B) Television network station.--The term `television network station' means a television broadcast station that is owned or operated by, or affiliated with, a television network.''. SEC. 107. COMPLETION OF BIENNIAL REGULATORY REVIEW. Within 180 days after the date of enactment of this Act, the Commission shall complete the biennial review required by section 202(h) of the Telecommunications Act of 1996. SEC. 108. RESULT OF LOSS OF NETWORK SERVICE. Until the Federal Communications Commission issues regulations under section 712(b)(2) of the Communications Act of 1934, if a subscriber's network service is terminated as a result of the provisions of section 119 of title 17, United States Code, the satellite carrier shall, upon the request of the subscriber, provide to the subscriber free of charge an over-the-air television broadcast receiving antenna that will provide the subscriber with an over-the-air signal of Grade B intensity for those network stations that were terminated as a result of such section 119. SEC. 109. INTERIM PROVISIONS. Until the Federal Communications Commission issues and implements regulations under section 712(b)(2) of the Communications Act of 1934, no subscriber whose household is located outside the Grade A contour of a network station shall have his or her satellite service of another network station affiliated with that same network terminated as a result of the provisions of section 119 of title 17, United States Code. TITLE II--SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL MARKETS SEC. 201. SHORT TITLE. This title may be cited as the ``Satellite Copyright Compulsory License Improvement Act''. SEC. 202. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL MARKETS. (a) In General.--Chapter 1 of title 17, United States Code, is amended by adding after section 121 the following new section: ``Sec. 122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local markets ``(a) Secondary Transmissions of Television Broadcast Stations by Satellite Carriers.--A secondary transmission of a primary transmission of a television broadcast station into the station's local market shall be subject to statutory licensing under this section if-- ``(1) the secondary transmission is made by a satellite carrier to the public; ``(2) the satellite carrier is in compliance with the rules, regulations, or authorizations of the Federal Communications Commission governing the carriage of television broadcast station signals; and ``(3) the satellite carrier makes a direct or indirect charge for the secondary transmission to-- ``(A) each subscriber receiving the secondary transmission; or ``(B) a distributor that has contracted with the satellite carrier for direct or indirect delivery of the secondary transmission to the public. ``(b) Reporting Requirements.-- ``(1) Initial lists.--A satellite carrier that makes secondary transmissions of a primary transmission made by a network station under subsection (a) shall, within 90 days after commencing such secondary transmissions, submit to the network that owns or is affiliated with the network station a list identifying (by name in alphabetical order and street address, including county and zip code) all subscribers to which the satellite carrier currently makes secondary transmissions of that primary transmission pursuant to this section. ``(2) Subsequent lists.--After the list is submitted under paragraph (1), the satellite carrier shall, on the 15th of each month, submit to the network a list identifying (by name in alphabetical order and street address, including county and zip code) any subscribers who have been added or dropped as subscribers since the last submission under this subsection. ``(3) Use of subscriber information.--Subscriber information submitted by a satellite carrier under this subsection may be used only for the purposes of monitoring compliance by the satellite carrier with this section. ``(4) Requirements of stations.--The submission requirements of this subsection shall apply to a satellite carrier only if the network to which the submissions are to be made places on file with the Register of Copyrights a document identifying the name and address of the person to whom such submissions are to be made. The Register shall maintain for public inspection a file of all such documents. ``(c) No Royalty Fee Required.--A satellite carrier whose secondary transmissions are subject to statutory licensing under subsection (a) shall have no royalty obligation for such secondary transmissions. ``(d) Noncompliance With Reporting and Regulatory Requirements.-- Notwithstanding subsection (a), the willful or repeated secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a primary transmission made by that television broadcast station and embodying a performance or display of a work is actionable as an act of infringement under section 501, and is fully subject to the remedies provided under sections 502 through 506 and 509, if the satellite carrier has not complied with the reporting requirements of subsection (b) or with the rules, regulations, and authorizations of the Federal Communications Commission concerning the carriage of television broadcast signals. ``(e) Willful Alterations.--Notwithstanding subsection (a), the secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a primary transmission made by that television broadcast station and embodying a performance or display of a work is actionable as an act of infringement under section 501, and is fully subject to the remedies provided by sections 502 through 506 and sections 509 and 510, if the content of the particular program in which the performance or display is embodied, or any commercial advertising or station announcement transmitted by the primary transmitter during, or immediately before or after, the transmission of such program, is in any way willfully altered by the satellite carrier through changes, deletions, or additions, or is combined with programming from any other broadcast signal. ``(f) Violation of Territorial Restrictions on Statutory License for Television Broadcast Stations.-- ``(1) Individual violations.--The willful or repeated secondary transmission to the public by a satellite carrier of a primary transmission made by a television broadcast station and embodying a performance or display of a work to a subscriber who does not reside in that station's local market, and is not subject to statutory licensing under section 119, or a private licensing agreement, is actionable as an act of infringement under section 501 and is fully subject to the remedies provided by sections 502 through 506 and 509, except that-- ``(A) no damages shall be awarded for such act of infringement if the satellite carrier took corrective action by promptly withdrawing service from the ineligible subscriber; and ``(B) any statutory damages shall not exceed $5 for such subscriber for each month during which the violation occurred. ``(2) Pattern of violations.--If a satellite carrier engages in a willful or repeated pattern or practice of secondarily transmitting to the public a primary transmission made by a television broadcast station and embodying a performance or display of a work to subscribers who do not reside in that station's local market, and are not subject to statutory licensing under section 119, then in addition to the remedies under paragraph (1)-- ``(A) if the pattern or practice has been carried out on a substantially nationwide basis, the court shall order a permanent injunction barring the secondary transmission by the satellite carrier of the primary transmissions of that television broadcast station (and if such television broadcast station is a network station, all other television broadcast stations affiliated with such network), and the court may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out; and ``(B) if the pattern or practice has been carried out on a local or regional basis with respect to more than one television broadcast station (and if such television broadcast station is a network station, all other television broadcast stations affiliated with such network), the court shall order a permanent injunction barring the secondary transmission in that locality or region by the satellite carrier of the primary transmissions of any television broadcast station, and the court may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out. ``(g) Burden of Proof.--In any action brought under subsection (d), (e), or (f), the satellite carrier shall have the burden of proving that its secondary transmission of a primary transmission by a television broadcast station is made only to subscribers located within that station's local market or subscribers being served in compliance with section 119. ``(h) Geographic Limitations on Secondary Transmissions.--The statutory license created by this section shall apply to secondary transmissions to locations in the United States, and any commonwealth, territory, or possession of the United States. ``(i) Exclusivity With Respect to Secondary Transmissions of Broadcast Stations by Satellite to Members of the Public.--No provision of section 111 or any other law (other than this section and section 119) shall be construed to contain any authorization, exemption, or license through which secondary transmissions by satellite carriers of programming contained in a primary transmission made by a television broadcast station may be made without obtaining the consent of the copyright owner. ``(j) Definitions.--In this section-- ``(1) Distributor.--The term `distributor' means an entity which contracts to distribute secondary transmissions from a satellite carrier and, either as a single channel or in a package with other programming, provides the secondary transmission either directly to individual subscribers or indirectly through other program distribution entities. ``(2) Local market.--The `local market' of a television broadcast station has the meaning given that term under section 3 of the Communications Act of 1934. ``(3) Network station; satellite carrier; secondary transmission.--The terms `network station', `satellite carrier' and `secondary transmission' have the meanings given such terms under section 119(d). ``(4) Subscriber.--The term `subscriber' means a person that receives a secondary transmission service by means of a secondary transmission from a satellite and pays a fee for the service, directly or indirectly, to the satellite carrier or to a distributor. ``(5) Television broadcast station.--The term `television broadcast station' means an over-the-air, commercial or noncommercial television broadcast station licensed by the Federal Communications Commission under subpart E of part 73 of title 47, Code of Federal Regulations.''. (b) Infringement of Copyright.--Section 501 of title 17, United States Code, is amended by adding at the end the following new subsection: ``(f) With respect to any secondary transmission that is made by a satellite carrier of a primary transmission embodying the performance or display of a work and is actionable as an act of infringement under section 122, a television broadcast station holding a copyright or other license to transmit or perform the same version of that work shall, for purposes of subsection (b) of this section, be treated as a legal or beneficial owner if such secondary transmission occurs within the local market of that station.''. (c) Technical and Conforming Amendments.--The table of sections for chapter 1 of title 17, United States Code, is amended by adding after the item relating to section 121 the following: ``122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local market.''. SEC. 203. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, UNITED STATES CODE. Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking ``December 31, 1999'' and inserting ``December 31, 2004''. SEC. 204. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS. Section 119(c) of title 17, United States Code, is amended by adding at the end the following new paragraph: ``(4) Reduction.-- ``(A) Superstation.--The rate of the royalty fee in effect on January 1, 1998, payable in each case under subsection (b)(1)(B)(i) shall be reduced by 30 percent. ``(B) Network.--The rate of the royalty fee in effect on January 1, 1998, payable under subsection (b)(1)(B)(ii) shall be reduced by 45 percent. ``(5) Public broadcasting service as agent.--For purposes of section 802, with respect to royalty fees paid by satellite carriers for retransmitting the Public Broadcasting Service satellite feed, the Public Broadcasting Service shall be the agent for all public television copyright claimants and all Public Broadcasting Service member stations.''. SEC. 205. PUBLIC BROADCASTING SERVICE SATELLITE FEED; DEFINITIONS. (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United States Code, is amended-- (1) by striking the paragraph heading and inserting ``(1) Superstations and pbs satellite feed.--''; (2) by inserting ``or by the Public Broadcasting Service satellite feed'' after ``superstation''; and (3) by adding at the end the following: ``In the case of the Public Broadcasting Service satellite feed, subsequent to-- ``(A) the date when a majority of subscribers to satellite carriers are able to receive the signal of at least one noncommercial educational television broadcast station from their satellite carrier within such stations' local market, or ``(B) 2 years after the effective date of the Satellite Copyright Compulsory License Improvement Act, whichever is earlier, the statutory license created by this section shall be conditioned on certification of support pursuant to section 396(n) of the Communications Act of 1934.''. (b) Definitions.--Section 119(d) of title 17, United States Code, is amended by adding at the end the following: ``(12) Public broadcasting service satellite feed.--The term `Public Broadcasting Service satellite feed' means the national satellite feed distributed by the Public Broadcasting Service consisting of educational and informational programming intended for private home viewing, to which the Public Broadcasting Service holds national terrestrial broadcast rights. ``(13) Local market.--The term `local market' has the meaning given that term in section 122(j)(2). ``(14) Television broadcast station.--The term `television broadcast station' has the meaning given that term in section 122(j)(5).''. SEC. 206. DISTANT SIGNAL RETRANSMISSIONS. Section 119 of title 17, United States Code, is amended-- (1) in subsection (a)-- (A) in paragraph (2)-- (i) by striking subparagraph (B) and inserting the following: ``(B) Secondary transmissions of network stations.--The statutory license provided for in subparagraph (A) shall be limited to secondary transmissions to persons who are unable to receive a signal of the intensity specified as the Network Nonduplication Signal Standard pursuant to section 712(b) of the Communications Act of 1934.''; (ii) in paragraph (5)-- (I) in subparagraph (A) by striking ``an unserved household'' and inserting ``a household permitted to receive the secondary transmission under paragraph (2)(B).''; (II) in subparagraph (B) by striking ``unserved households'' and inserting ``households permitted to receive the secondary transmission under paragraph (2)(B).''; and (III) in subparagraph (D) by striking ``to an unserved household'' and inserting ``to a household permitted to receive the secondary transmission under paragraph (2)(B).''; and (B) by striking paragraph (8) and redesignating paragraphs (9) and (10) as paragraphs (8) and (9), respectively; and (2) in subsection (d), by striking paragraphs (10) and (11). SEC. 207. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS. Section 119(a) of title 17, United States Code, is amended-- (1) in paragraph (1), by inserting ``the satellite carrier is in compliance with the rules, regulations, or authorizations of the Federal Communications Commission governing the carriage of television broadcast station signals,'' after ``satellite carrier to the public for private home viewing,''; (2) in paragraph (2), by inserting ``the satellite carrier is in compliance with the rules, regulations, or authorizations of the Federal Communications Commission governing the carriage of television broadcast station signals,'' after ``satellite carrier to the public for private home viewing,''; and (3) by adding at the end the following new paragraph: ``(10) Statutory license contingent on compliance with fcc rules and remedial steps.--Notwithstanding any other provision of this section, the willful or repeated secondary transmission to the public by a satellite carrier of a primary transmission made by a broadcast station licensed by the Federal Communications Commission is actionable as an act of infringement under section 501, and is fully subject to the remedies provided by sections 502 through 506 and 509, if, at the time of such transmission, the satellite carrier is not in compliance with the rules, regulations, and authorizations of the Federal Communications Commission concerning the carriage of television broadcast station signals.''. SEC. 208. STUDY ON TECHNICAL AND ECONOMIC IMPACT OF MUST-CARRY ON DELIVERY OF LOCAL SIGNALS. Not later than July 1, 2000, the Register of Copyrights and the Assistant Secretary of Commerce for Communications and Information shall submit to the Congress a joint report that sets forth in detail their findings and conclusions with respect to the following: (1) The availability of local television broadcast signals in small and rural markets as part of a service that competes with, or supplements, video programming containing copyrighted material delivered by satellite carriers or cable operators. (2) The technical feasibility of imposing the requirements of section 338 of the Communications Act of 1934 on satellite carriers that deliver local broadcast station signals containing copyrighted material pursuant to section 122 of title 17, United States Code, and the technical and economic impact of section 338 of the Communications Act of 1934 on the ability of satellite carriers to serve multiple television markets with retransmission of local television broadcast stations, with particular consideration given to the ability to serve television markets other than the 100 largest television markets in the United States (as determined by the Nielson Media Research and published in the DMA market and Demographic Report). (3) The technological capability of dual satellite dish technology to receive effectively over-the-air broadcast transmissions containing copyrighted material from the local market, the availability of such capability in small and rural markets, and the affordability of such capability. (4) The technological capability (including interference), availability, and affordability of wireless cable (or terrestrial wireless) delivery of local broadcast station signals containing copyrighted material pursuant to section 111 of title 17, United States Code, including the feasibility and desirability of the expedited licensing of such competitive wireless technologies for rural and small markets. (5) The technological capability, availability, and affordability of a broadcast-only basic tier of cable service. SEC. 209. EFFECTIVE DATE. This title and the amendments made by this title shall take effect on July 1, 1999, except that section 208 and the amendments made by section 205 shall take effect on the date of the enactment of this Act.